Hospitality Business Toolkit

This report provides insights into the principles of monitoring and managing financial performance in the hospitality industry. It also covers the stages of HR life cycle and provides a performance management plan to resolve negative behavior. Additionally, it discusses the impact of laws and regulations on the hospitality industry.

Hospitality Business Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................3
Part A...............................................................................................................................................3
Principles of monitoring and managing financial performance..................................................3
Journal entries and ledger............................................................................................................4
Trial balance................................................................................................................................7
Part B...............................................................................................................................................8
Develop a performance management plan and apply techniques to resolve negative behaviour
...................................................................................................................................................10
Part C.............................................................................................................................................12
Legislations with respect to hospitality organization ...............................................................12
Impact of business laws upon the business decision-making...................................................13
Part D.............................................................................................................................................13
Interrelation between different functional roles........................................................................13
Various methods of communication, coordination and monitoring applied within a specific
department of a hospitality organization to strengthen the value chain....................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
The hospitality industry is the most competitive industry currently as it focuses on
offering services with respect to accommodation, transportation, food and beverages and more.
In this report, East London Catering which is the engaged in event management is taken as an
organization. This report elaborate on the various ways for managing the financial performance
along with recording the financial transactions with the objective of minimizing the cost within
the industry. It also covers HR life cycle and the performance management plan for improving
the employee retention. This report provides an insight about the various laws which are required
to be considered by hospitality industry and the effect of contract, company and employment
laws on it. Also, it also provides an insight about the significance of coordination and integration
within different departments. This report is prepared considered myself as the hospitality
manager of East London Catering.
Part A
Principles of monitoring and managing financial performance
The financial performance analysis means analysing and interpreting the performance
level of the business on the basis of its financial viability and profitability. It becomes very
important to judge the financial performance of the business which helps in forming business
strategies. The below given points are the key principles which provides support in measuring
the performance level which are stated below.
Principle 1: Budgets should be effective and accurate
The financial manager of the company must focus on preparing the list of all the
resources and finances which might be required to perform the required task with the help of
effective budget plan (Khalatur and Zubkova, 2018). The East London Catering need to measure
the performance level of the company financial terms in order to identify and rectify the mistakes
within the financial business transaction which helps in minimizing the operational cost.
Principle 2: The budget should be set that are attainable and reasonable
The budget plan prepared by the company should be strictly formed with the objective of
minimizing the expenses and also it should be prepared in such a manner which is realistic,
attainable and reasonable. This will help East London Catering to perform their business
operations effectively without making any changes to its quality and profitability.
Principle 3: Budget should be created after complete analysis

Under this principle, the budget should be prepared after carrying out the complete
analysis with respect to the business operations and the activities carried out. East London
Catering is required to consider their mission and aim which will help in better performance of
the business operation with the available funds.
Journal entries and ledger
General Journal
Date Account Name Dr (£) Cr (£)
04/03/202
0 Cash 30000
Capital 30000
05/03/202
0 Store rent 1000
Cash 1000
06/03/202
0 Washer and Dryers 25000
Cash 10000
Creditor (Supplier of
Washer and Dryer) 15000
07/03/202
0 Insurance Policy 1200
Cash 1200
09/03/202
0 Food supplies 8000
Beverage 7000
Creditor (WH Adams
Ltd) 15000

11/03/202
0 Laundry fee 200
Cash 200
15/03/202
0 Tel & Internet 2220
Cash 2220
15/03/202
0
Rates, Water Charges
& Refuse 950
Cash 950
16/03/202
0 Wages and Salaries 1740
Cash 1740
18/03/202
0 Cash 20000
Sales (Food) 20000
20/03/202
0 Cash 13000
Sales (Beverage) 13000
Ledger
Capital
Dr £ Cr £
04/03/20 Cash 30000

Expense (Store Rent)
Debit £ Credit £
05/03/20 Cash 1000 0
Creditor (Supplier of Washer and Dryer)
Debit £ Credit £
06/03/20 Assest (W&D) 15000
Assest (Washer and Dryer)
Debit £ Credit £
06/03/20 Cash 10000
06/03/20 Creditor (Supplier) 15000
Creditor (WH Adams Ltd)
Debit £ Credit £
09/03/20 Expense (Food supplies) 8000
09/03/20 Expense (Beverages) 7000
Exp (Wages and Salaries)
Debit £ Credit £
16/03/20 Cash 1750 1750

Sales (Food)
Debit £ Credit £
0 18/03/20. Cash 20000
Sales (Beverage)
Debit £ Credit £
0 20/03/2020 Cash 13000
Cash
Debit £ Credit £
04/03/20 Capital 30000 05/03/20 Store rent 1000
18/03/2020 Sales (Food
supplies) 20000 06/03/20 Assest (W&D) 10000
20/03/2020 Sales (Beverages) 13000 07/03/2020 Exp (Ins) 1200
11/03/2020 Exp (Laundry fee) 200
15/03/2020 Exp (Tel & Int) 2220
15/03/2020 Exp ( Rates, Water and
refuse) 950
Total 63000 16/03/2020 Exp (Wages and Salaries) 1740
Normal Balance 45690 Total 17310
Expense (Insurance)
Debit £ Credit £

07/03/2020 Cash 1200
Expense (Food Supplies)
Debit £ Credit £
09/03/20 Creditor (WH Adams
Ltd) 8000
Expense (Beverage)
Debit £ Credit £
09/03/20 Creditor (WH Adams
Ltd) 7000
Expense (Laundery Fee)
Dr £ Cr £
11/03/2020 Cash 200
Expense (Tele and Internet)
Debit £ Credit £
15/03/2020 Cash 2220 2220
Exp ( Rates, Water and refuse)
Debit £ Credit £
15/03/2020 Cash 950 0
Trial balance
Trial Balance

East London Catering
31/03/2020
Account Dr Cr
Capital 30000
Cash 45690
Expenses (Store rent) 1000
Expenses (Supplier) 8000
Expense (Beverage) 7000
Expense (Insurance) 1200
Expense (Laundry fee) 200
Expense (Tel and Int) 2220
Expense (Water and refuse) 950
Expense (Wage and Salaries ) 1740
Assets Washer and Dryer 25000
Creditor (WH Adams Ltd) 15000
Creditor (Washer and Supplier) 15000
Sales (Food) 20000
Sales (Beverages) 13000
Total 93000 93000
Task B
Review the stages of HR life cycle
The human resource management is the formal structure which is responsible for
managing the workforce in an organization. The HR activities goes through various phases
which provides assistance to the company in retaining and developing employees of the
company. Currently, there is vacancy for accountant in the organization so to select the required

personnel, the HR life cycle can be followed effectively. A detailed analysis of the HR life cycle
is given below.
Ill
ustration 1: The six stages of the employee lifecycle. (Source:
Six Stages to Success with the Employee Lifecycle. 2018)
The above chart states about the various stages of HR life cycle which provides
assistance to the businesses in retaining and developing the existing employees. In this
accountant job is taken as an example.
Attraction: For becoming successful, it becomes essential to maintain a position in the
market in order to attract the right talent which will help the organization in achieving their
desired targets along with the quality of work (McCracken and et.al, 2017). Thus, for attracting
the highly skilled employees it is important for East London Catering to provide attractive
compensation along with other benefits in the workplace.
Recruitment: this is a very crucial stage for East London Catering as it essential for it to
recruit right candidate at the right place. The human resource manager must select the candidate
having the required and relevant knowledge and experience in the respective field so that the
candidate would be able to manage the financial transactions and other accounts related work
effectively. Thus, recruitment stage is very essential for the company.

On-boarding: In this stage, the selected candidates are undergone the process of
developing the knowledge base of the employees, enhancing skills and behaviour and attitude of
the employees in respect to the job profile and designation (Albalaki, Talab and Majeed, 2018).
This helps in exercising smooth flow of business operations. After selecting the candidate, East
London Catering is required to organize proper training and development programme for the
accountant with the objective of developing an understanding in respect to the ways functions are
being performed.
Development: For maintaining or enhancing the quality of work and the performance
level of the employees it is important for East London Catering to concentrate on encouraging
the professional development in the organization by introducing different types of learning
programs with the aim of upgrading the knowledge and skills of the existing workforce. This will
help the newly appointed accountant to gain knowledge about the new methods of undertaking
the work which will assist them in performing the task effectively.
Retention: In this stage, East London Catering must work on keeping the top performers
of the organization happy and satisfied by meeting with their needs and creating the positive
work culture. The cost of replacing the existing employees with the new requires to incur huge
cost as it not only affects the performance of East London Catering but it will also disturb the
workings of other departments as well and mostly importantly the finance department as it is the
centre of the business as it manages the funds of the organization.
Separation: In this last stage of HR life cycle process in which the workforce attains the
point where they have all their tasks and responsibilities and are now ready to retire. East
London Catering must take a final feedback from the accountant who is leaving the job and any
improvement they might think require to for improving the current working conditions. This
provides help in improving the weaker points of the company which will help in retaining the
employees and achieving the goals.
Develop a performance management plan and apply techniques to resolve negative behaviour
Performance management plan
The performance management refers to the continuous process of interaction between the
managers and the employees with the objective of aligning the performance of the employees
based on the set criteria. It includes timely monitoring and guiding the performance of the
employees for achieving the future goals and objectives (Allan and et.al, 2019). East London

Catering must work towards effectively managing its employees with the objective of
eliminating the negative behavior which results into increasing employee retention. The below
stated steps of performance management plan will help East London Catering in achieving this:
Set performance objectives
Under this, the HR department of East London Catering must examine the work
performed by the accountant who has been recently appointed which will help in determining the
areas of improvement. After monitoring and evaluating the performance, the company must set
the SMART performance objectives based on which target is set up in accordance with the
objectives as per the job role.
Provide training
After identifying the area's improvement, it is important for the human resource
department organize the training program with the objective to provide help to the newly
appointed accountant for sharpening their skills as per the job role. It will help in improving the
performance in an effective manner.
Evaluating the performance
The next step after providing training is that the human resource department is required to
evaluate the performance of the accountant after undergoing the training. This will help the East
London Catering in determining the effectiveness of its training program.
Comparing the actual performance level with the set benchmark
In this step, after proper examination and evaluation of the current performance of the
new accountant, the result is being compared with the performance objectives which is being set
by the human resource department. This will help in identifying the gap between the actual
performance and the planned one which will be used by East London Catering in taking up the
appropriate and corrective measures for reducing this gap.
Target area Steps for achieving
the target
Measurement of
success
Time required
Level of accuracy in
financial data
management
Providing proper
training and
development sessions
to the candidate with
respect to the job done
By analyzing the
financial data and
reports being prepared
by the head of that
department.
2 weeks

in the organization.
Identifying the risk on
time
The candidate will be
provided with the
scenarios which will
help in brushing the
skills on risks
identification.
The head will be
measuring the
financial risk and the
operational risk being
identified by the
candidate which will
help in ensuring that
whether is capable
enough or not.
3 weeks
Techniques for removing negative behaviour and overcome the staff retention issues
There are certain techniques which can be implemented by the organization which will
help in removing the unwanted and negative behaviour in the organization along with the staff
retention issues. The following are the techniques which can be useful for East London Catering.
Managing the organizational culture: It is very important for the business organization
for effectively managing the organizational culture. The culture should be aligned with the
mission and vision of the organization which will help in effectively managing the direction in
which the organization wants to go and this can be made understood by all the employees. This
will provide guidance to the employees so that they can work in a particular direction. Thus,
culture should be such that it will help in motivating and guiding the behaviour of the employees.
This will create positive environment in East London Catering leading to reducing staff turnover.
Promoting equality and diversity: Equality and diversity plays an important role in
effectively managing the employees of the company. East London Catering should implement in
its policy that they are promoting equality and diversity in the company. Each and every
employee are treated equally and are being judged based on their performance. Also, it provides
equal opportunity to both male and female employees and does not create any discrimination in
terms of race, religion, gender, caste and other backgrounds. This will create a sense of
belongingness among the employees for the company resulting into creation of positive
environment and employee retention as well.

Providing motivation: East London Catering should provide motivation to its employees
from time to time which will help in increasing the motivation of employees which will result
into increase in performance and productivity level. This consequently leads to mitigation of
negative behaviour and improving the employee turnover ratio.
Task C
Legislations with respect to hospitality organization
The Trade Description Act 1968
This Act states about when an undertaking is conducting any marketing activities then it
is important for the company to provide accurate information and descriptions of the facilities
provided which should be true and fair and should not be misleading.
Data protection Act, 1998
This Act ensures that anyone who is holding the personal information of the guest should
be protected (Hotels Laws UK. 2020). It includes the information which is being stored by the
company while making payment through credit card, thus, it is essential for the East London
Catering to make sure that guests privacy of data is being maintained.
The Safety Signs and Signals Regulations Act, 1996
Under this Act, the East London Catering is required to comply with some crucial safety
aspects such as providing safety signs and signals at the right place which is visible to everyone.
This helps in ensuring the safety of everyone in situation of fire or other contingencies.
The Hygiene of Foodstuffs, 2004
This Act applies to anyone who serves food. Under this, the organization is required to
meet the certain requirements of the catering. The East London Catering is required to comply
with the procedures set out in HACCP which refers to hazards, analysis, critical, control, point.
Thus, all these informations is required to be properly maintained.
Impact of business laws upon the business decision-making
Company law: The company law states about the incorporation of the company. It
describes the guideline to be followed. For instance, it provides complete details about how to
conduct the business along with the rules and regulations to be followed. East London Catering
would be required to follow it which affects the decision-making of the organization.
Contract Law: It reflects about how the businesses execute their contracts (Ferris and
et.al, 2020). For example, the impact of Brexit will result into ceasing services to be provided to

the people of other European nations. Thus, it will affect the contract being signed by the parties
of these two nations. This will affect the overall business functioning.
Employment law: Under this law, the terms of employment will be considered. For
instance, there is a set limit for minimum number of hours the employee will work with the set
minimum wages, thus, this rule affects the productivity of the employees.
Part D
Interrelation between different functional roles
There are different types of functional departments in a hospitality sector which are
interrelated each other. A detailed description is given below.
Finance and purchase department: The finance department takes care of the financial
aspects of the business such as budgeting, allocation of financial resources etc. While the
purchase department is dependent upon the finance department in respect to the allocation of the
funds. Both are interrelated as the purchase department is required to provide complete details in
respect to expenses incurred along with invoices.
Human resource and marketing department: The human resource works on managing
the workforce of the organization by meeting the requirement. It focuses on recruitment and
training the employees (Sumaneeva and et.al, 2019). The marketing department works on
implementing the various marketing activities for which it requires respective personnel for
carrying out the process. Thus, the marketing department coordinates with the HR department
for the purpose of recruiting the required candidate. Both the department works together and
prepares the job description based on which the recruitment process is initiated. Thus, both the
departments are interconnected to each other.
Sales and food and beverage department: The sales department ensures that the
company maximizes it revenue by providing best of the services to the guests and clients. The
food and beverage department is responsible for managing the foodstuffs with respect to the
event. Based on sales, the food and beverages of the organization is being managed in order to
avoid the situation of wastage. Therefore, both the departments are interconnected to one
another.

Various methods of communication, coordination and monitoring applied within a specific
department of a hospitality organization to strengthen the value chain
There are different method that can be implemented for achieving proper communication,
coordination and monitoring. Here, R&D department is taken based on which following methods
are stated.
Methods of communication
Written communication
In this method, the information is shared through a formal approach which depends upon
the writing skills. The main sources of written communication is through writing emails,
application to the authorities (Karnaukhova and Polyanskaya, 2016). In R&D, proper written
communication will be helpful as it involves large number of employees and things are done on
large scale. Therefore, written communication provides a proof of information.
Oral communication
In this, communication is done orally through spoken words which can be face to face of
phone conversation. This method is helpful in quickly sharing the relevant information in case of
shortage of time. In R&D, decisions are required to be taken quickly and thus, this method is
perfect for communication.
Methods of coordination
Vertical coordination
In this coordination is required to be achieved through the various links at the different
organizational levels. It ensures that all the levels in the organization acts in harmony. The R&D
department is required to coordinate with top level as wells bottom level for getting the things
done.
Horizontal coordination
In this, the coordination is required to be achieved at the same level among different
departments. The R&D department is required to coordinate with the other department like
production and marketing in respect the product or service they are going to promote.
Centralization and decentralization
It will help in determining decision-making authority which is based on the
organizational hierarchy. This method will help the R&D department in implementing better

coordination in case when people are aware of the authority who will be taking decisions, this
leads to reduction in wasting time.
Methods of monitoring
Benchmarking
Benchmarking can be used in evaluating the performance of the R&D department with
other department in respect to performance (Touhidul and Sorooshian, 2019). Also, it can be
used in comparison with the other competitors in the market. It will help in proper analysis on
account of cost and innovation.
Observation
The functioning of the R&D department can be observed by the supervisors which helps
in effectively evaluating the functioning of the department.
All these above stated methods helps in strengthening the value chain of the organization
along with communication, coordination and monitoring.
CONCLUSION
It can be concluded from the above that there are different types of functions under
hospitality sector and it becomes essential for it to effectively manage the and monitor its
performance both financial and non-financial. Also, the application of HR life cycle is analysed
for the accountant job role and also various techniques for resolving the retention issue in the
workplace. Along with that the key legislation to be complied by the organization and its impact
over the business and interrelationship between various organizational functions in achieving
success.

REFERENCES
Books and Journals
Albalaki, F. M. M., Talab, H. R. and Majeed, R. J., 2018, June. Organizational Life Cycle Stages
and Competitor-Focused Accounting. In Book of Proceedings (p. 113).
Allan, L. M. and et.al, 2019. Recruitment and retention. In An intervention to improve outcomes
of falls in dementia: the DIFRID mixed-methods feasibility study. NIHR Journals
Library.
Ferris, K. and et.al, 2020. The consequences of the Brexit vote on management attitudes to
recruitment in the hospitality industry. Business Law Review. 39(4).
Ingenhoff, D., 2018. Monitoring. The International Encyclopedia of Strategic Communication,
pp.1-6.
Karnaukhova, N. A. and Polyanskaya, E. V., 2016. Communication and reputation as essentials
for the positioning of an organization. AI & society. 31(3). pp.371-379.
Khalatur, S. and Zubkova, Y., 2018. Improvement of methodological principles of financial
resources management of enterprises in economy of Ukraine. Технологический аудит
и резервы производства. (5 (5)). pp.29-37.
McCracken, M. and et.al, 2017. Human resource business partner lifecycle model: exploring how
the relationship between HRBPs and their line manager partners evolves. Human
Resource Management Journal. 27(1). pp.58-74.
SUMANEEVA, K. A. and et.al, 2019. Cross-Functional Training of Front-Line Hotel
Employees, In-Role and Extra-Role Job Performance, Customer Satisfaction, and
Customer Loyalty: A conceptual Model Proposal. Journal of Environmental
Management and Tourism. 9(6). pp.1183-1189.
Touhidul, I. A. and Sorooshian, S., 2019. Balancing for an effective communication in
organizations. Science and engineering ethics. 25(5). pp.1605-1607.
Online
Hotels Laws UK. 2020. [Online]. Available Through:<https://www.assetsure.com/business/hotel-
insurance/hotels-laws-uk/>.